CARRIER GLOBAL CORP (CARR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CARR - US14448C1045 - Common Stock
54.15 USD
+0.75 (+1.4%)
54.45 USD
+0.3 (+0.55%)
We assign a fundamental rating of 3 out of 10 to CARR. CARR was compared to 41 industry peers in the Building Products industry. While CARR is still in line with the averages on profitability rating, there are concerns on its financial health. CARR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CARR had positive earnings in the past year.
In the past year CARR had a positive cash flow from operations.
In the past 5 years CARR has always been profitable.
Each year in the past 5 years CARR had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 10.46%, CARR is doing good in the industry, outperforming 70.73% of the companies in the same industry.
With an excellent Return On Equity value of 27.45%, CARR belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.09%, CARR is doing worse than 70.73% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CARR is below the industry average of 12.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.46% | ||
| ROE | 27.45% | ||
| ROIC | 5.09% |
ROA(3y)10.88%
ROA(5y)9.38%
ROE(3y)33.63%
ROE(5y)31.44%
ROIC(3y)8.06%
ROIC(5y)7.66%
1.3 Margins
Looking at the Profit Margin, with a value of 18.05%, CARR belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
In the last couple of years the Profit Margin of CARR has grown nicely.
CARR has a Operating Margin (11.00%) which is comparable to the rest of the industry.
CARR's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 27.36%, CARR perfoms like the industry average, outperforming 41.46% of the companies in the same industry.
In the last couple of years the Gross Margin of CARR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11% | ||
| PM (TTM) | 18.05% | ||
| GM | 27.36% |
OM growth 3Y-5.06%
OM growth 5Y-4.9%
PM growth 3Y45.61%
PM growth 5Y16.99%
GM growth 3Y-2.78%
GM growth 5Y-1.79%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CARR is destroying value.
Compared to 1 year ago, CARR has more shares outstanding
CARR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CARR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.45 indicates that CARR is not a great score, but indicates only limited risk for bankruptcy at the moment.
CARR's Altman-Z score of 2.45 is on the low side compared to the rest of the industry. CARR is outperformed by 80.49% of its industry peers.
CARR has a debt to FCF ratio of 8.45. This is a slightly negative value and a sign of low solvency as CARR would need 8.45 years to pay back of all of its debts.
The Debt to FCF ratio of CARR (8.45) is worse than 63.41% of its industry peers.
A Debt/Equity ratio of 0.78 indicates that CARR is somewhat dependend on debt financing.
CARR has a worse Debt to Equity ratio (0.78) than 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 8.45 | ||
| Altman-Z | 2.45 |
ROIC/WACC0.57
WACC8.89%
2.3 Liquidity
A Current Ratio of 1.14 indicates that CARR should not have too much problems paying its short term obligations.
CARR's Current ratio of 1.14 is on the low side compared to the rest of the industry. CARR is outperformed by 87.80% of its industry peers.
A Quick Ratio of 0.75 indicates that CARR may have some problems paying its short term obligations.
CARR has a Quick ratio of 0.75. This is amonst the worse of the industry: CARR underperforms 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
CARR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.36%.
Measured over the past years, CARR shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.27% on average per year.
Looking at the last year, CARR shows a very negative growth in Revenue. The Revenue has decreased by -22.93% in the last year.
The Revenue has been growing slightly by 3.86% on average over the past years.
EPS 1Y (TTM)-0.36%
EPS 3Y7.25%
EPS 5Y20.27%
EPS Q2Q%-12.99%
Revenue 1Y (TTM)-22.93%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%-6.77%
3.2 Future
Based on estimates for the next years, CARR will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.59% on average per year.
CARR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.00% yearly.
EPS Next Y-3.57%
EPS Next 2Y4.07%
EPS Next 3Y7.64%
EPS Next 5Y11.59%
Revenue Next Year-3.63%
Revenue Next 2Y-0.07%
Revenue Next 3Y1.93%
Revenue Next 5Y5%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.48 indicates a rather expensive valuation of CARR.
CARR's Price/Earnings is on the same level as the industry average.
CARR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.86, which indicates a rather expensive current valuation of CARR.
CARR's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.96, CARR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.48 | ||
| Fwd PE | 17.86 |
4.2 Price Multiples
CARR's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as CARR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.32 | ||
| EV/EBITDA | 15.21 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.96
EPS Next 2Y4.07%
EPS Next 3Y7.64%
5. Dividend
5.1 Amount
CARR has a Yearly Dividend Yield of 1.76%.
CARR's Dividend Yield is rather good when compared to the industry average which is at 1.31. CARR pays more dividend than 85.37% of the companies in the same industry.
CARR's Dividend Yield is slightly below the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
5.2 History
CARR has been paying a dividend for over 5 years, so it has already some track record.
CARR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
18.56% of the earnings are spent on dividend by CARR. This is a low number and sustainable payout ratio.
DP18.56%
EPS Next 2Y4.07%
EPS Next 3Y7.64%
54.15
+0.75 (+1.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners87.23%
Inst Owner Change-0.67%
Ins Owners6.1%
Ins Owner Change2.9%
Market Cap45.61B
Revenue(TTM)22.06B
Net Income(TTM)3.98B
Analysts77.42
Price Target73.87 (36.42%)
Short Float %1.65%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
Yearly Dividend0.78
Dividend Growth(5Y)N/A
DP18.56%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.53%
Min EPS beat(2)-0.24%
Max EPS beat(2)15.31%
EPS beat(4)3
Avg EPS beat(4)7.55%
Min EPS beat(4)-0.24%
Max EPS beat(4)15.31%
EPS beat(8)6
Avg EPS beat(8)5.54%
EPS beat(12)9
Avg EPS beat(12)4.93%
EPS beat(16)13
Avg EPS beat(16)6.21%
Revenue beat(2)0
Avg Revenue beat(2)-1.75%
Min Revenue beat(2)-1.83%
Max Revenue beat(2)-1.67%
Revenue beat(4)0
Avg Revenue beat(4)-2.28%
Min Revenue beat(4)-4.33%
Max Revenue beat(4)-1.31%
Revenue beat(8)0
Avg Revenue beat(8)-4%
Revenue beat(12)2
Avg Revenue beat(12)-2.9%
Revenue beat(16)4
Avg Revenue beat(16)-2.03%
PT rev (1m)-3.49%
PT rev (3m)-13.53%
EPS NQ rev (1m)-3.92%
EPS NQ rev (3m)-38.25%
EPS NY rev (1m)-1.33%
EPS NY rev (3m)-12.67%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-8.56%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-4.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.48 | ||
| Fwd PE | 17.86 | ||
| P/S | 2.07 | ||
| P/FCF | 32.32 | ||
| P/OCF | 24.14 | ||
| P/B | 3.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.21 |
EPS(TTM)2.78
EY5.13%
EPS(NY)3.03
Fwd EY5.6%
FCF(TTM)1.68
FCFY3.09%
OCF(TTM)2.24
OCFY4.14%
SpS26.19
BVpS17.23
TBVpS-9.18
PEG (NY)N/A
PEG (5Y)0.96
Graham Number32.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.46% | ||
| ROE | 27.45% | ||
| ROCE | 8% | ||
| ROIC | 5.09% | ||
| ROICexc | 5.34% | ||
| ROICexgc | 23.15% | ||
| OM | 11% | ||
| PM (TTM) | 18.05% | ||
| GM | 27.36% | ||
| FCFM | 6.4% |
ROA(3y)10.88%
ROA(5y)9.38%
ROE(3y)33.63%
ROE(5y)31.44%
ROIC(3y)8.06%
ROIC(5y)7.66%
ROICexc(3y)10.45%
ROICexc(5y)9.61%
ROICexgc(3y)34.91%
ROICexgc(5y)29.9%
ROCE(3y)12.67%
ROCE(5y)12.04%
ROICexgc growth 3Y11.52%
ROICexgc growth 5Y4.64%
ROICexc growth 3Y-15.42%
ROICexc growth 5Y-8.97%
OM growth 3Y-5.06%
OM growth 5Y-4.9%
PM growth 3Y45.61%
PM growth 5Y16.99%
GM growth 3Y-2.78%
GM growth 5Y-1.79%
F-Score5
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 8.45 | ||
| Debt/EBITDA | 3.07 | ||
| Cap/Depr | 37.85% | ||
| Cap/Sales | 2.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 51.21% | ||
| Profit Quality | 35.43% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 2.45 |
F-Score5
WACC8.89%
ROIC/WACC0.57
Cap/Depr(3y)74.81%
Cap/Depr(5y)83.81%
Cap/Sales(3y)2.12%
Cap/Sales(5y)1.96%
Profit Quality(3y)66.45%
Profit Quality(5y)76.55%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.36%
EPS 3Y7.25%
EPS 5Y20.27%
EPS Q2Q%-12.99%
EPS Next Y-3.57%
EPS Next 2Y4.07%
EPS Next 3Y7.64%
EPS Next 5Y11.59%
Revenue 1Y (TTM)-22.93%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%-6.77%
Revenue Next Year-3.63%
Revenue Next 2Y-0.07%
Revenue Next 3Y1.93%
Revenue Next 5Y5%
EBIT growth 1Y-5.35%
EBIT growth 3Y-2.27%
EBIT growth 5Y-1.23%
EBIT Next Year22.6%
EBIT Next 3Y10.9%
EBIT Next 5Y8.53%
FCF growth 1Y-38.44%
FCF growth 3Y-42.28%
FCF growth 5Y-27.03%
OCF growth 1Y-29.2%
OCF growth 3Y-26.64%
OCF growth 5Y-15.1%
CARRIER GLOBAL CORP / CARR FAQ
Can you provide the ChartMill fundamental rating for CARRIER GLOBAL CORP?
ChartMill assigns a fundamental rating of 3 / 10 to CARR.
What is the valuation status of CARRIER GLOBAL CORP (CARR) stock?
ChartMill assigns a valuation rating of 2 / 10 to CARRIER GLOBAL CORP (CARR). This can be considered as Overvalued.
How profitable is CARRIER GLOBAL CORP (CARR) stock?
CARRIER GLOBAL CORP (CARR) has a profitability rating of 5 / 10.
What is the valuation of CARRIER GLOBAL CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CARRIER GLOBAL CORP (CARR) is 19.48 and the Price/Book (PB) ratio is 3.14.
Can you provide the expected EPS growth for CARR stock?
The Earnings per Share (EPS) of CARRIER GLOBAL CORP (CARR) is expected to decline by -3.57% in the next year.